218 Letter XVII. 
which are the ancestors, I suppose, of the present genera- 
tion—those they now have. 
This island, together with the Isle of Pines, was taken 
possession of by the French in the year 1853, and the Loyalty 
Islands were shortly afterwards annexed. Since that time they 
have been occupying it as a penal settlement and military sta- 
tion, but doing little in the way of colonizing it. I have no 
doubt, however, but that itwilleventually become avery important 
place. It has all the necessary requisites: a commanding position; 
a fine healthy climate ; soil fit for cultivation and for grazing ; 
minerals in great variety and abundance ; and splendid har- 
bours. At present, cattle breeding and sugar growing are the 
chief industries. Sheep don’t feed well, as the grass is too 
coarse ; but cattle seem to thrive splendidly, and must pay the 
breeder handsomely, as there is a great demand for fresh meat 
for the supply of the military and penal establishments and men- 
of-war. 
The French Government are inclined, I believe, to favour 
the settlement of colonists of other nations on New Caledenia— 
giving them land at a nominal rental, with option of purchase 
after a certain number of years. There are several young men 
on the island now who went from the colonies ; how they are 
getting on I am not ina position to say. 
The minerals are as yet almost entirely undeveloped. There 
is a gold-mine at the northern end of the island, which is said 
to be paying well: but besides gold, copper and iron abound, 
and are waiting to be extracted from the mother earth. _ 
The harbours which New Caledonia possesses can hardly be 
surpassed : there is first the outer encircling reef, and then in- 
numerable well-protected bays along the coast inside of it. 
The bay upon which Noumea stands is one of the best, having 
the shelter of two islands, which lie in front of it. 
